Ola Electric’s initial public offering (IPO) garnered a subscription rate of 35% on its opening day, with retail investors leading the charge, subscribing to 1.57 times their allotted shares. The non-institutional investor category saw a subscription rate of 20%, while qualified institutional buyers did not place any bids on the first day. The portion of the offering reserved for employees was notably oversubscribed, reaching 4.88 times.
The IPO consists of a fresh issue amounting to Rs 5,500 crore and an offer for sale (OFS) of 8.4 crore shares. Bhavish Aggarwal, the company’s leader, plans to offload 37.9 million shares. The price range for the IPO is set between Rs 72 and Rs 76 per share, with a face value of Rs 10. This pricing values the company at Rs 33,500 crore (approximately $4 billion) at the upper end of the spectrum.
The IPO opened for anchor investors on Thursday, raising Rs 2,763 crore from 80 domestic and international funds. Notable anchor investors include State Bank of India Mutual Fund, HDFC Mutual Fund, Nomura India Investment Fund, and Goldman Sachs (Singapore) Pte Ltd. According to a report from Reuters, the company received bids worth $2 billion from institutional investors.
Ola Electric, backed by SoftBank, is the first pure-play electric vehicle manufacturer and the second company from Bengaluru to list on Indian stock exchanges, following GoDigit General Insurance. The IPO subscription period will close on Tuesday, August 6. According to the red herring prospectus (RHP), the electric two-wheeler manufacturer reported a loss of Rs 1,584 crore for the fiscal year ending March 31, 2024, compared to a loss of Rs 1,472 crore in the previous year.
